The core investor in Union Bank Plc has agreed to sell its share to Titan Trust Bank Limited (TTB).
The Nation learnt that Union Global Partners Limited, Atlas Mara Limited and other shareholders have reached an agreement with Titan Trust Bank Limited (TTB) to divest their shareholding in Union Bank to TTB.
To this end, the Board of Union Bank of Nigeria Plc (Union Bank) on Thursday wrote to formally notified the NGX and Securities Exchange Commission of the investors’ decision.
The agreement, which is subject to regulatory approvals and other financial conditions, will upon completion, transfer 89.39 per cent of Union Bank’s issued share capital to TTB.
Union Bank board chair, Mrs. Beatrice Hamza Bassey, said: “The Board looks forward to supporting the next steps to ensure a seamless completion of the process following regulatory approvals.
She said they were “grateful to our current investors whose significant and consequential investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions”.
Hamza Bassey added that “Union Bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent year on year profitability. This is a solid foundation for our incoming investors to build on as we move into a new era for the Bank.”
Chair, Titan Trust Bank, Mr. Tunde Lemo, said: “The Board of Titan Trust Bank and key stakeholders see the transaction as a key step for Titan Trust in its strategic growth journey that will propel the institution to the next level in the Nigerian banking sector”.
The deal, he said, “represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model which promises to enhance the product and service offering for our combined valued customers.”
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo said: “The transaction marks a significant milestone in the 104 years journey of the bank.
“Whilst thanking our current investors for their unwavering commitment to Union Bank over the years, we welcome our new core investor, TTB.
“We recognise the strategic fit between the two institutions and expect that this deal will deliver the best outcome for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank,” Okonkwo said.
Chief Executive Officer, Titan Trust Bank, Mr. Mudassir Amray added: “After completing over two years of operations with aggressive organic growth, we are excited to have an opportunity for a significant leap forward in market share. UBN’s widespread presence, state of the art technology platform, quality staff and strong brand loyalty fits well with our synchronized modular strategy”.
TTB he said it looks “forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Rothschild & Cie acted as financial adviser while White and Case LLP; Banwo and Ighodalo acted as legal advisers respectively to the selling shareholders of Union Bank.
Citigroup Global Markets Limited acted as financial adviser, Pricewaterhouse Coopers as due diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias and Co. acted as legal advisers respectively to TTB.